Investment Bank Remains Bullish on OKTA Inc. (OKTA) After Q1 Results

Okta, Inc. (NASDAQ:OKTA) reported higher-than-expected backlog growth during its first quarter but provided Q2 backlog-growth guidance that came in below analysts' average estimate.

Investment bank DA Davidson reacted to the news by trimming its price target on OKTA stock to $140 from $145. However, the bank kept a Buy rating on the name.

DA Davidson's Take on Okta, Inc. (NASDAQ:OKTA)'s Q1 Results and Its Outlook

The  investment bank believes that the company reported strong Q1 results. Okta, Inc. (NASDAQ:OKTA)'s Q1 financial metrics were not undermined by macroeconomic challenges, the investment bank noted.

If the latter trend continues, the company's full-year revenue growth could very well come in above its current outlook of 9%-10%, DA Davidson believes.

The Recent Price Action of OKTA Stock

In the last month, the stock has dropped 2%, while it has advanced 23% in the last three months.

While we acknowledge the potential of OKTA as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than OKTA and that has 100x upside potential, check out our report about this cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.